☑
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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New York
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11-1362020
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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37-18 Northern Blvd., Long Island City,
N.Y.
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11101
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(Address of principal executive offices)
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(Zip Code)
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Large Accelerated Filer ☑
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Accelerated Filer ☐
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Non-Accelerated Filer ☐
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Smaller reporting company ☐
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Emerging growth company ☐
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Page No. |
Item 1. |
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Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2019 and 2018 |
3 |
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4 |
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Consolidated Balance Sheets as of March 31, 2019 (Unaudited) and December 31, 2018 |
5 |
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Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2019 and 2018 |
6 |
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7 |
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8 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
24 |
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Item 3. |
32 |
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Item 4. |
33 |
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PART II – OTHER INFORMATION |
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Item 1. |
34 |
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Item 2. |
34 |
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Item 6. |
35 | |
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36 |
(In thousands, except share and per share data)
|
Three Months Ended
March 31,
|
|||||||
2019
|
2018
|
|||||||
(Unaudited)
|
||||||||
Net sales
|
$
|
283,766
|
$
|
261,826
|
||||
Cost of sales
|
205,803
|
189,237
|
||||||
Gross profit
|
77,963
|
72,589
|
||||||
Selling, general and administrative expenses
|
60,000
|
57,717
|
||||||
Restructuring and integration expenses
|
—
|
2,836
|
||||||
Other income (expense), net
|
(6
|
)
|
271
|
|||||
Operating income
|
17,957
|
12,307
|
||||||
Other non-operating income (expense), net
|
646
|
(31
|
)
|
|||||
Interest expense
|
1,089
|
632
|
||||||
Earnings from continuing operations before taxes
|
17,514
|
11,644
|
||||||
Provision for income taxes
|
4,410
|
3,047
|
||||||
Earnings from continuing operations
|
13,104
|
8,597
|
||||||
Loss from discontinued operations, net of income taxes
|
(888
|
)
|
(608
|
)
|
||||
Net earnings
|
$
|
12,216
|
$
|
7,989
|
||||
Per
Share Data:
|
||||||||
Net earnings per common share – Basic:
|
||||||||
Earnings from continuing operations
|
$
|
0.58
|
$
|
0.38
|
||||
Discontinued operations
|
(0.04
|
)
|
(0.02
|
)
|
||||
Net earnings per common share – Basic
|
$
|
0.54
|
$
|
0.36
|
||||
Net earnings per common share – Diluted:
|
||||||||
Earnings from continuing operations
|
$
|
0.57
|
$
|
0.37
|
||||
Discontinued operations
|
(0.04
|
)
|
(0.02
|
)
|
||||
Net earnings per common share – Diluted
|
$
|
0.53
|
$
|
0.35
|
||||
Dividend declared per share
|
$
|
0.23
|
$
|
0.21
|
||||
Average number of common shares
|
22,421,795
|
22,498,510
|
||||||
Average number of common shares and dilutive common shares
|
22,905,364
|
22,967,281
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2019
|
2018
|
||||||
(Unaudited)
|
||||||||
Net earnings
|
$
|
12,216
|
$
|
7,989
|
||||
Other comprehensive income (loss), net of tax:
|
||||||||
Foreign currency translation adjustments
|
695
|
2,219
|
||||||
Pension and postretirement plans
|
(5
|
)
|
(5
|
)
|
||||
Total other comprehensive income, net of tax
|
690
|
2,214
|
||||||
Comprehensive income
|
$
|
12,906
|
$
|
10,203
|
(In thousands, except share and per share data)
|
March 31,
2019
|
December 31,
2018
|
||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
11,746
|
$
|
11,138
|
||||
Accounts receivable, less allowances for discounts and doubtful accounts of $6,643 and $5,687 for 2019 and 2018, respectively
|
174,164
|
157,535
|
||||||
Inventories
|
365,251
|
349,811
|
||||||
Unreturned customer inventories
|
19,784
|
20,484
|
||||||
Prepaid expenses and other current assets
|
9,412
|
7,256
|
||||||
Total current assets
|
580,357
|
546,224
|
||||||
Property, plant and equipment, net of accumulated depreciation of $187,777 and $186,135 for 2019 and 2018, respectively
|
88,850
|
90,754
|
||||||
Operating lease right-of-use assets
|
37,301
|
—
|
||||||
Goodwill
|
67,370
|
67,321
|
||||||
Other intangibles, net
|
46,581
|
48,411
|
||||||
Deferred income taxes
|
41,126
|
42,334
|
||||||
Investments in unconsolidated affiliates
|
33,703
|
32,469
|
||||||
Other assets
|
17,446
|
15,619
|
||||||
Total assets
|
$
|
912,734
|
$
|
843,132
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Notes payable
|
$
|
78,717
|
$
|
43,689
|
||||
Current portion of other debt
|
5,023
|
5,377
|
||||||
Accounts payable
|
96,878
|
94,357
|
||||||
Sundry payables and accrued expenses
|
32,116
|
31,033
|
||||||
Accrued customer returns
|
55,318
|
57,433
|
||||||
Accrued core liability
|
28,260
|
31,263
|
||||||
Accrued rebates
|
31,357
|
28,870
|
||||||
Payroll and commissions
|
17,901
|
20,564
|
||||||
Total current liabilities
|
345,570
|
312,586
|
||||||
Long-term debt
|
161
|
153
|
||||||
Noncurrent operating lease liabilities
|
30,130
|
—
|
||||||
Other accrued liabilities
|
19,996
|
18,075
|
||||||
Accrued asbestos liabilities
|
43,837
|
45,117
|
||||||
Total liabilities
|
439,694
|
375,931
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock – par value $2.00 per share:
|
||||||||
Authorized – 30,000,000 shares; issued 23,936,036 shares
|
47,872
|
47,872
|
||||||
Capital in excess of par value
|
104,467
|
102,470
|
||||||
Retained earnings
|
387,170
|
380,113
|
||||||
Accumulated other comprehensive income
|
(8,904
|
)
|
(9,594
|
)
|
||||
Treasury stock – at cost (1,565,916 shares and 1,503,284 shares in 2019 and 2018, respectively)
|
(57,565
|
)
|
(53,660
|
)
|
||||
Total stockholders’ equity
|
473,040
|
467,201
|
||||||
Total liabilities and stockholders’ equity
|
$
|
912,734
|
$
|
843,132
|
(In thousands)
|
Three Months Ended
March 31,
|
|||||||
2019
|
2018
|
|||||||
(Unaudited)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net earnings
|
$
|
12,216
|
$
|
7,989
|
||||
Adjustments to reconcile net earnings to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
6,178
|
6,016
|
||||||
Amortization of deferred financing cost
|
56
|
86
|
||||||
Increase to allowance for doubtful accounts
|
920
|
110
|
||||||
Increase to inventory reserves
|
357
|
1,223
|
||||||
Amortization of deferred gain on sale of building
|
—
|
(218
|
)
|
|||||
Equity (income) loss from joint ventures
|
(661
|
)
|
171
|
|||||
Employee stock ownership plan allocation
|
630
|
639
|
||||||
Stock-based compensation
|
1,900
|
1,917
|
||||||
(Increase) decrease in deferred income taxes
|
1,213
|
(77
|
)
|
|||||
Loss on discontinued operations, net of tax
|
888
|
608
|
||||||
Change in assets and liabilities:
|
||||||||
Increase in accounts receivable
|
(22,252
|
)
|
(20,367
|
)
|
||||
Increase in inventories
|
(14,656
|
)
|
(3,390
|
)
|
||||
(Increase) decrease in prepaid expenses and other current assets
|
(282
|
)
|
1,559
|
|||||
Increase in accounts payable
|
1,181
|
10,674
|
||||||
Decrease in sundry payables and accrued expenses
|
(12,911
|
)
|
(12,997
|
)
|
||||
Net changes in other assets and liabilities
|
(1,503
|
)
|
(95
|
)
|
||||
Net cash used in operating activities
|
(26,726
|
)
|
(6,152
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Acquisitions of and investments in businesses
|
—
|
(6,472
|
)
|
|||||
Net proceeds from sale of Grapevine, Texas facility
|
4,801
|
—
|
||||||
Capital expenditures
|
(3,084
|
)
|
(6,903
|
)
|
||||
Other investing activities
|
29
|
—
|
||||||
Net cash provided by (used in) investing activities
|
1,746
|
(13,375
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net borrowings under line-of-credit agreements
|
35,029
|
33,000
|
||||||
Net borrowings (payments) of other debt and capital lease obligations
|
(271
|
)
|
1,054
|
|||||
Purchase of treasury stock
|
(5,835
|
)
|
(3,221
|
)
|
||||
Increase in overdraft balances
|
1,409
|
1,885
|
||||||
Dividends paid
|
(5,159
|
)
|
(4,721
|
)
|
||||
Net cash provided by financing activities
|
25,173
|
27,997
|
||||||
Effect of exchange rate changes on cash
|
415
|
433
|
||||||
Net increase in cash and cash equivalents
|
608
|
8,903
|
||||||
CASH AND CASH EQUIVALENTS at beginning of period
|
11,138
|
17,323
|
||||||
CASH AND CASH EQUIVALENTS at end of period
|
$
|
11,746
|
$
|
26,226
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
974
|
$
|
480
|
||||
Income taxes
|
$
|
2,156
|
$
|
671
|
||||
Noncash investing activity:
|
||||||||
Accrual for additional investment in China joint venture
|
— | $ | 3,473 |
Common
Stock
|
Capital in
Excess of
Par Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Balance at December 31, 2018
|
$
|
47,872
|
$
|
102,470
|
$
|
380,113
|
$
|
(9,594
|
)
|
$
|
(53,660
|
)
|
$
|
467,201
|
||||||||||
Net earnings
|
—
|
—
|
12,216
|
—
|
—
|
12,216
|
||||||||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
690
|
—
|
690
|
||||||||||||||||||
Cash dividends paid
|
—
|
—
|
(5,159
|
)
|
—
|
—
|
(5,159
|
)
|
||||||||||||||||
Purchase of treasury stock
|
—
|
—
|
—
|
—
|
(6,327
|
)
|
(6,327
|
)
|
||||||||||||||||
Stock-based compensation
|
—
|
1,252
|
—
|
—
|
648
|
1,900
|
||||||||||||||||||
Employee Stock Ownership Plan
|
—
|
745
|
—
|
—
|
1,774
|
2,519
|
||||||||||||||||||
Balance at March 31, 2019
|
$
|
47,872
|
$
|
104,467
|
$
|
387,170
|
$
|
(8,904
|
)
|
$
|
(57,565
|
)
|
$
|
473,040
|
Common
Stock
|
Capital in
Excess of
Par Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Balance at December 31, 2017
|
$
|
47,872
|
$
|
100,057
|
$
|
357,153
|
$
|
(4,109
|
)
|
$
|
(47,319
|
)
|
$
|
453,654
|
||||||||||
Cumulative effect adjustment
|
—
|
—
|
(1,189
|
)
|
—
|
—
|
(1,189
|
)
|
||||||||||||||||
Net earnings
|
—
|
—
|
7,989
|
—
|
—
|
7,989
|
||||||||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
2,214
|
—
|
2,214
|
||||||||||||||||||
Cash dividends paid
|
—
|
—
|
(4,721
|
)
|
—
|
—
|
(4,721
|
)
|
||||||||||||||||
Purchase of treasury stock
|
—
|
—
|
—
|
—
|
(2,912
|
)
|
(2,912
|
)
|
||||||||||||||||
Stock-based compensation
|
—
|
1,824
|
—
|
—
|
93
|
1,917
|
||||||||||||||||||
Employee Stock Ownership Plan
|
—
|
765
|
—
|
—
|
1,792
|
2,557
|
||||||||||||||||||
Balance at March 31, 2018
|
$
|
47,872
|
$
|
102,646
|
$
|
359,232
|
$
|
(1,895
|
)
|
$
|
(48,346
|
)
|
$
|
459,509
|
Balance at
December 31,
2018
|
Adjustments
Due to
Adoption of
ASU 2016-02
|
Balance at
January 1,
2019
|
||||||||||
Balance Sheet
|
||||||||||||
Operating lease right-of-use asset
|
$
|
—
|
$
|
38,580
|
$
|
38,580
|
||||||
Sundry payables and accrued expenses
|
31,033
|
7,232
|
38,265
|
|||||||||
Noncurrent operating lease liabilities
|
—
|
31,348
|
31,348
|
Standard
|
Description
|
Date of
adoption
|
Effects on the financial
statements or other significant
matters
|
|||
ASU 2017-04, Simplifying the Test for Goodwill Impairment
|
This standard is intended to simplify the accounting for goodwill impairment. ASU 2017-04 removes Step 2 of the test, which requires a
hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.
|
January 1, 2020, with early adoption permitted
|
The new standard should be applied prospectively. We will consider the new standard when performing our annual impairment test and evaluate
when we will adopt the new standard.
|
|||
ASU 2016-13, Financial
Instruments – Credit Losses
|
This standard creates a single model to measure impairment on financial assets, which includes trade account receivables. An estimate of
expected credit losses on trade account receivables over their contractual life will be required to be recorded at inception, based on historical information, current conditions, and reasonable and supportable forecasts.
|
January 1, 2020, with early adoption permitted
|
We do not anticipate that the adoption of this standard will have a material impact on the manner in which we estimate our allowance for
doubtful accounts on trade accounts receivable, or on our consolidated financial statements.
|
Balance Sheet Information
|
March 31,
2019
|
|||
Assets
|
||||
Operating lease right-of-use assets
|
$
|
37,301
|
||
Liabilities
|
||||
Sundry payables and accrued expenses
|
$
|
8,148
|
||
Noncurrent operating lease liabilities
|
30,130
|
|||
Total operating lease liabilities
|
$
|
38,278
|
Expense and Cash Flow Information
|
Three Months
Ended
March 31, 2019
|
|||
Lease Expense
|
||||
Operating lease expense (a)
|
$
|
2,224
|
||
Supplemental Cash Flow Information
|
||||
Cash Paid for the amounts included in the measurement of lease liabilities:
|
||||
Operating cash flows from operating leases
|
$
|
2,161
|
||
Right-of-use assets obtained in exchange for new lease obligations:
|
||||
Operating leases
|
$
|
566
|
||
(a) Excludes expenses related to non-lease components such as maintenance, property taxes, etc.,
and operating lease expense for leases with an initial term of 12 months or less, which is not material.
|
||||
Weighted Average Remaining Lease Term | ||||
Operating leases
|
6.3 Years
|
|||
Weighted Average Discount Rate | ||||
Operating leases
|
3.8
|
%
|
||
2019
|
$
|
6,413
|
||
2020
|
7,597
|
|||
2021
|
6,983
|
|||
2022
|
5,785
|
|||
2023
|
5,277
|
|||
Thereafter
|
11,316
|
|||
Total lease payments
|
$
|
43,371
|
||
Less: Interest
|
(5,093
|
)
|
||
Present value of lease liabilities
|
$
|
38,278
|
Workforce
Reduction
|
Other Exit
Costs
|
Total
|
||||||||||
Exit activity liability at December 31, 2018
|
$
|
742
|
$
|
—
|
$
|
742
|
||||||
Restructuring and integration costs:
|
||||||||||||
Amounts provided for during 2019
|
—
|
—
|
—
|
|||||||||
Cash payments
|
(60
|
)
|
—
|
(60
|
)
|
|||||||
Exit activity liability at March 31, 2019
|
$
|
682
|
$
|
—
|
$
|
682
|
Engine
Management
|
Temperature
Control
|
Other
|
Total
|
|||||||||||||
Exit activity liability at December 31, 2018
|
$
|
—
|
$
|
304
|
$
|
—
|
$
|
304
|
||||||||
Restructuring and integration costs:
|
||||||||||||||||
Amounts provided for during 2019
|
—
|
—
|
—
|
—
|
||||||||||||
Cash payments
|
—
|
(29
|
)
|
—
|
(29
|
)
|
||||||||||
Exit activity liability at March 31, 2019
|
$
|
—
|
$
|
275
|
$
|
—
|
$
|
275
|
Engine
Management
|
Temperature
Control
|
Other
|
Total
|
|||||||||||||
Exit activity liability at December 31, 2018
|
$
|
438
|
$
|
—
|
$
|
—
|
$
|
438
|
||||||||
Restructuring and integration costs:
|
||||||||||||||||
Amounts provided for during 2019
|
—
|
—
|
—
|
—
|
||||||||||||
Cash payments
|
(31
|
)
|
—
|
—
|
(31
|
)
|
||||||||||
Exit activity liability at March 31, 2019
|
$
|
407
|
$
|
—
|
$
|
—
|
$
|
407
|
March 31,
2019
|
December 31,
2018
|
|||||||
(In thousands)
|
||||||||
Finished goods
|
$
|
239,889
|
$
|
226,802
|
||||
Work in process
|
9,174
|
10,527
|
||||||
Raw materials
|
116,188
|
112,482
|
||||||
Subtotal
|
365,251
|
349,811
|
||||||
Unreturned customer inventories
|
19,784
|
20,484
|
||||||
Total inventories
|
$
|
385,035
|
$
|
370,295
|
March 31,
2019
|
December 31,
2018
|
|||||||
(In thousands)
|
||||||||
Customer relationships
|
$
|
87,256
|
$
|
87,195
|
||||
Trademarks and trade names
|
6,800
|
6,800
|
||||||
Non-compete agreements
|
3,193
|
3,193
|
||||||
Patents
|
723
|
723
|
||||||
Supply agreements
|
800
|
800
|
||||||
Leaseholds
|
160
|
160
|
||||||
Total acquired intangible assets
|
98,932
|
98,871
|
||||||
Less accumulated amortization (1)
|
(53,184
|
)
|
(51,391
|
)
|
||||
Net acquired intangible assets
|
$
|
45,748
|
$
|
47,480
|
(1) |
Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being
amortized.
|
March 31,
2019
|
December 31,
2018
|
|||||||
(In thousands)
|
||||||||
Revolving credit facilities
|
$
|
78,717
|
$
|
43,689
|
||||
Other (1)
|
5,184
|
5,530
|
||||||
Total debt
|
$
|
83,901
|
$
|
49,219
|
||||
Current maturities of debt
|
$
|
83,740
|
$
|
49,066
|
||||
Long-term debt
|
161
|
153
|
||||||
Total debt
|
$
|
83,901
|
$
|
49,219
|
(1) |
Other includes borrowings under our Polish overdraft facility of Zloty 19 million (approximately $5 million) and Zloty 19.9 million (approximately $5.3 million)
as of March 31, 2019 and December 31, 2018, respectively.
|
Shares
|
Weighted Average
Grant Date Fair
Value Per Share
|
|||||||
Balance at December 31, 2018
|
870,041
|
$
|
34.59
|
|||||
Granted
|
—
|
—
|
||||||
Vested
|
(17,807
|
)
|
26.50
|
|||||
Forfeited
|
(2,000
|
)
|
44.95
|
|||||
Balance at March 31, 2019
|
850,234
|
$
|
34.73
|
Three Months Ended
March 31, |
||||||||
Basic Net Earnings Per Common Share:
|
2019
|
2018
|
||||||
Earnings from continuing operations
|
$
|
13,104
|
$
|
8,597
|
||||
Loss from discontinued operations
|
(888
|
)
|
(608
|
)
|
||||
Net earnings available to common stockholders
|
$
|
12,216
|
$
|
7,989
|
||||
Weighted average common shares outstanding
|
22,422
|
22,499
|
||||||
Earnings from continuing operations per common share
|
$
|
0.58
|
$
|
0.38
|
||||
Loss from discontinued operations per common share
|
(0.04
|
)
|
(0.02
|
)
|
||||
Basic net earnings per common share
|
$
|
0.54
|
$
|
0.36
|
||||
Diluted Net Earnings Per Common Share:
|
||||||||
Earnings from continuing operations
|
$
|
13,104
|
$
|
8,597
|
||||
Loss from discontinued operations
|
(888
|
)
|
(608
|
)
|
||||
Net earnings available to common stockholders
|
$
|
12,216
|
$
|
7,989
|
||||
Weighted average common shares outstanding
|
22,422
|
22,499
|
||||||
Plus incremental shares from assumed conversions:
|
||||||||
Dilutive effect of restricted stock and performance stock
|
483
|
468
|
||||||
Weighted average common shares outstanding – Diluted
|
22,905
|
22,967
|
||||||
Earnings from continuing operations per common share
|
$
|
0.57
|
$
|
0.37
|
||||
Loss from discontinued operations per common share
|
(0.04
|
)
|
(0.02
|
)
|
||||
Diluted net earnings per common share
|
$
|
0.53
|
$
|
0.35
|
Three Months Ended
March 31, |
||||||||
2019
|
2018
|
|||||||
Restricted and performance shares
|
252
|
277
|
Three Months Ended
March 31, |
||||||||
2019
|
2018
|
|||||||
Net Sales (a)
|
||||||||
Engine Management
|
$
|
213,189
|
$
|
199,488
|
||||
Temperature Control
|
68,924
|
60,231
|
||||||
All Other
|
1,653
|
2,107
|
||||||
Consolidated
|
$
|
283,766
|
$
|
261,826
|
||||
Intersegment Revenue (a)
|
||||||||
Engine Management
|
$
|
5,349
|
$
|
5,991
|
||||
Temperature Control
|
1,933
|
1,680
|
||||||
All Other
|
(7,282
|
)
|
(7,671
|
)
|
||||
Consolidated
|
$
|
—
|
$
|
—
|
||||
Operating Income
|
||||||||
Engine Management
|
$
|
22,344
|
$
|
17,376
|
||||
Temperature Control
|
2,050
|
831
|
||||||
All Other
|
(6,437
|
)
|
(5,900
|
)
|
||||
Consolidated
|
$
|
17,957
|
$
|
12,307
|
(a) |
Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.
|
Three months ended March 31, 2019 (a)
|
Engine
Management
|
Temperature
Control
|
Other (b)
|
Total
|
||||||||||||
Geographic Area:
|
||||||||||||||||
United States
|
$
|
187,894
|
$
|
64,851
|
$
|
—
|
$
|
252,745
|
||||||||
Canada
|
7,066
|
3,462
|
1,653
|
12,181
|
||||||||||||
Mexico
|
4,488
|
155
|
—
|
4,643
|
||||||||||||
Europe
|
3,097
|
157
|
—
|
3,254
|
||||||||||||
Other foreign
|
10,644
|
299
|
—
|
10,943
|
||||||||||||
Total
|
$
|
213,189
|
$
|
68,924
|
$
|
1,653
|
$
|
283,766
|
||||||||
Major Product Group:
|
||||||||||||||||
Ignition, emission control, fuel and safety related system products
|
$
|
176,061
|
$
|
—
|
$
|
1,392
|
$
|
177,453
|
||||||||
Wire and cable
|
37,128
|
—
|
80
|
37,208
|
||||||||||||
Compressors
|
—
|
39,811
|
(260
|
)
|
39,551
|
|||||||||||
Other climate control parts
|
—
|
29,113
|
441
|
29,554
|
||||||||||||
Total
|
$
|
213,189
|
$
|
68,924
|
$
|
1,653
|
$
|
283,766
|
||||||||
Major Sales Channel:
|
||||||||||||||||
Aftermarket
|
$
|
178,539
|
$
|
60,541
|
$
|
1,653
|
$
|
240,733
|
||||||||
OE/OES
|
29,140
|
7,875
|
—
|
37,015
|
||||||||||||
Export
|
5,510
|
508
|
—
|
6,018
|
||||||||||||
Total
|
$
|
213,189
|
$
|
68,924
|
$
|
1,653
|
$
|
283,766
|
Three months ended March 31, 2018 (a)
|
Engine
Management
|
Temperature
Control
|
Other (b)
|
Total
|
||||||||||||
Geographic Area:
|
||||||||||||||||
United States
|
$
|
176,917
|
$
|
56,201
|
$
|
—
|
$
|
233,118
|
||||||||
Canada
|
7,804
|
3,301
|
2,107
|
13,212
|
||||||||||||
Mexico
|
4,339
|
212
|
—
|
4,551
|
||||||||||||
Europe
|
3,480
|
164
|
—
|
3,644
|
||||||||||||
Other foreign
|
6,948
|
353
|
—
|
7,301
|
||||||||||||
Total
|
$
|
199,488
|
$
|
60,231
|
$
|
2,107
|
$
|
261,826
|
||||||||
Major Product Group:
|
||||||||||||||||
Ignition, emission control, fuel and safety related system products
|
$
|
161,077
|
$
|
—
|
$
|
1,662
|
$
|
162,739
|
||||||||
Wire and cable
|
38,411
|
—
|
191
|
38,602
|
||||||||||||
Compressors
|
—
|
29,898
|
(56
|
)
|
29,842
|
|||||||||||
Other climate control parts
|
—
|
30,333
|
310
|
30,643
|
||||||||||||
Total
|
$
|
199,488
|
$
|
60,231
|
$
|
2,107
|
$
|
261,826
|
||||||||
Major Sales Channel:
|
||||||||||||||||
Aftermarket
|
$
|
169,310
|
$
|
51,630
|
$
|
2,107
|
$
|
223,047
|
||||||||
OE/OES
|
25,056
|
8,101
|
—
|
33,157
|
||||||||||||
Export
|
5,122
|
500
|
—
|
5,622
|
||||||||||||
Total
|
$
|
199,488
|
$
|
60,231
|
$
|
2,107
|
$
|
261,826
|
(a) |
Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.
|
(b) |
Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business
unit that does not meet the criteria of a reportable operating segment. Intersegment compressor sales for the three months ended March 31, 2019 and 2018 exceeded third party sales from our Canadian business unit.
|
Three Months Ended
March 31, |
||||||||
2019
|
2018
|
|||||||
Balance, beginning of period
|
$
|
19,636
|
$
|
20,929
|
||||
Liabilities accrued for current year sales
|
26,396
|
21,242
|
||||||
Settlements of warranty claims
|
(23,338
|
)
|
(21,611
|
)
|
||||
Balance, end of period
|
$
|
22,694
|
$
|
20,560
|
Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Engine Management:
|
||||||||
Ignition, Emission Control, Fuel and Safety Related System Products
|
$
|
176,061
|
$
|
161,077
|
||||
Wire and Cable
|
37,128
|
38,411
|
||||||
Total
Engine Management
|
213,189
|
199,488
|
||||||
Temperature Control:
|
||||||||
Compressors
|
39,811
|
29,898
|
||||||
Other Climate Control Parts
|
29,113
|
30,333
|
||||||
Total
Temperature Control
|
68,924
|
60,231
|
||||||
All
Other
|
1,653
|
2,107
|
||||||
Total
|
$
|
283,766
|
$
|
261,826
|
Three Months Ended
March 31,
|
Engine
Management
|
Temperature
Control
|
Other
|
Total
|
||||||||||||
2019
|
||||||||||||||||
Net sales
|
$
|
213,189
|
$
|
68,924
|
$
|
1,653
|
$
|
283,766
|
||||||||
Gross margins
|
59,693
|
16,191
|
2,079
|
77,963
|
||||||||||||
Gross margin percentage
|
28
|
%
|
23.5
|
%
|
—
|
27.5
|
%
|
|||||||||
2018
|
||||||||||||||||
Net sales
|
$
|
199,488
|
$
|
60,231
|
$
|
2,107
|
$
|
261,826
|
||||||||
Gross margins
|
56,470
|
13,667
|
2,452
|
72,589
|
||||||||||||
Gross margin percentage
|
28.3
|
%
|
22.7
|
%
|
—
|
27.7
|
%
|
(In thousands)
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024-2028
|
Total
|
|||||||||||||||||||||
Operating lease obligations
|
$
|
6,413
|
$
|
7,597
|
$
|
6,983
|
$
|
5,785
|
$
|
5,277
|
$
|
11,316
|
$
|
43,371
|
||||||||||||||
Postretirement benefits
|
31
|
36
|
32
|
29
|
25
|
76
|
229
|
|||||||||||||||||||||
Severance payments related to restructuring and integration
|
371
|
222
|
66
|
23
|
—
|
—
|
682
|
|||||||||||||||||||||
Total commitments
|
$
|
6,815
|
$
|
7,855
|
$
|
7,081
|